If you drive for DoorDash or Skip the Dishes in Canada, every kilometre you log and every receipt you save can reduce the tax you owe. DoorDash tax deductions Canada follow standard CRA self-employment rules: you report gross income on Form T2125, subtract eligible business expenses, and pay income tax plus CPP on the net amount. This guide walks through every deduction category, shows a real calculation, and explains the GST/HST rules that apply to food delivery drivers in 2026.
How DoorDash and Skip Income Is Reported to the CRA
Both platforms treat you as an independent contractor, not an employee. That means no taxes are withheld from your pay, and you are responsible for reporting everything yourself.
The tax slips differ by platform. Skip the Dishes issues a T4A summarising your total earnings for the year, including tips and kilometres driven. DoorDash does not issue a T4A; instead, you pull your annual earnings summary from the Dasher portal. Under Bill C-47, both platforms now report your gross income directly to the CRA, so your return must match what the agency already knows.
You file delivery income on Schedule T2125 (Statement of Business or Professional Activities). Net income after deductions flows to your T1 return and is subject to federal and provincial income tax. You also owe both portions of CPP — the employee share and the employer share — because you are self-employed. The filing deadline is June 15, but any balance owing is due April 30.
A good rule of thumb: set aside 20 to 25 percent of your gross delivery earnings throughout the year so the April bill is not a surprise.
Vehicle Expenses: Your Largest Deduction
For drivers who deliver by car, vehicle costs are by far the biggest write-off. The CRA gives you two methods:
Method 1 — CRA per-kilometre rate (2026):
- $0.73/km for the first 5,000 business kilometres
- $0.67/km for every business kilometre after that
Method 2 — Actual expenses multiplied by business-use percentage:
Add up every vehicle cost for the year — fuel, insurance, maintenance, repairs, licence and registration fees, loan interest (capped at $350/month), lease payments (capped at $1,100/month), and Capital Cost Allowance. Then multiply the total by your business-use ratio (business km / total km).
Which Method Wins? A Real Example
Suppose you drove 28,000 km in 2026. Of those, 22,000 km were DoorDash and Skip deliveries. Business-use percentage = 78.6%.
Per-km calculation: 5,000 km x $0.73 = $3,650 + 17,000 km x $0.67 = $11,390 = $15,040
Actual expenses calculation: Fuel $5,200 + insurance $2,400 + maintenance $1,800 + CCA $3,600 + registration $120 + interest $2,800 = $15,920 total x 78.6% = $12,513
In this scenario the per-km method wins by over $2,500. However, if your actual costs were higher — for example, a newer vehicle with larger CCA or expensive city insurance — the actual method could come out ahead. Always calculate both before filing.
Whichever method you choose, the CRA requires a mileage logbook recording every business trip: date, destination, kilometres, and purpose. Without one, the entire vehicle deduction can be denied on audit. Tripbook automates this by tracking trips in the background as you drive, building a CRA-compliant log you can export at tax time.
Phone, Data Plan, and App Expenses
Your smartphone is your dispatch centre, GPS navigator, and customer communication line. The business-use portion of your monthly plan is deductible.
If you use your phone 80 percent for delivery work (app, navigation, customer contact) and 20 percent personally, you deduct 80 percent of the monthly bill. On a $75/month plan, that is $720 per year.
The phone hardware itself is also deductible. If you purchased a phone for under $500, expense the full cost in the year of purchase. Over $500, claim it through CCA over multiple years.
Keep every monthly statement as supporting documentation.
Delivery Equipment and Supplies
Items purchased specifically for food delivery are fully deductible business supplies:
- Insulated bags and food carriers — the hot-and-cold bags DoorDash or Skip may charge you for, or any aftermarket bags you buy
- Phone mount and car charger — essential delivery accessories
- Bike lock, panniers, and lights — if you deliver by bicycle
- Safety gear — helmet, reflective vest, dashcam for night driving
Not deductible: regular clothing, even if you only wear it during shifts. The CRA requires gear to be delivery-specific.
Other Deductions You Should Not Miss
Beyond vehicle and equipment costs, several smaller deductions add up over a full year:
| Expense | How to Claim |
|---|---|
| Parking fees during deliveries | Full amount, keep receipts |
| Accounting and tax prep fees | Full amount |
| Bank fees on a business account | Full amount |
| GPS or navigation app subscription | Full amount if business-only |
| Business portion of home internet | Prorate by business-use % |
| Home office (dedicated space) | Prorate by square footage used for order management |
GST/HST Rules for Delivery Drivers
Food delivery has specific GST/HST treatment that differs from rideshare driving:
- You do not need to register for GST/HST until your worldwide gross self-employment revenue exceeds $30,000 over four consecutive calendar quarters. This is the small-supplier threshold.
- Unlike Uber or Lyft rideshare drivers — who must register from their very first ride — delivery-only drivers on DoorDash and Skip follow the standard $30,000 rule.
- Courier services fall under zero-rated supplies, meaning you charge GST/HST at a rate of zero percent. You do not collect tax from customers.
- However, once registered, you can claim Input Tax Credits (ITCs) to recover the GST/HST you paid on business expenses like fuel, phone bills, and equipment. This effectively gives you a rebate on the tax built into your costs.
- Even below the $30,000 threshold, you may voluntarily register to start claiming ITCs. If your business expenses are substantial, this can be worthwhile.
When your income approaches the threshold, consult a tax professional. The interlining rules for courier services add complexity, and getting GST/HST wrong can lead to penalties.
For a deeper dive, see our guide on GST/HST input tax credits for vehicles.
Filing Checklist: Six Steps to Complete Your Return
- Gather tax slips and earnings summaries — T4A from Skip, annual summary from DoorDash portal. Confirm totals against your own records.
- Export your mileage log — from Tripbook or another tracking method. Calculate total business kilometres and business-use percentage.
- Total your expenses — vehicle costs, phone, equipment, parking, professional fees. Separate receipts by category.
- Complete Form T2125 — enter gross income, claim each deduction, calculate net business income.
- Calculate CPP owing — the CRA will compute this on Schedule 8 based on your T2125 net income.
- File by June 15, pay by April 30 — self-employed filers get the extended deadline, but interest on balances owing starts May 1.
For the full T2125 walkthrough, see T2125 vehicle expenses for the self-employed. If you also deliver for other platforms, our delivery driver tax deductions Canada guide covers every platform in one place.
DoorDash Tax Deductions Canada: Key Numbers for 2026
- CRA per-km rate: $0.73 (first 5,000 km), $0.67 thereafter
- Lease payment cap: $1,100/month
- Loan interest cap: $350/month
- CCA ceiling for passenger vehicles: $37,000 (plus tax)
- GST/HST registration threshold: $30,000 gross revenue
- Record retention: 6 years minimum
Download Tripbook to automatically track every delivery kilometre and build the CRA-compliant mileage log that backs up your DoorDash tax deductions Canada. Start a free trip today and let the app handle the logbook while you focus on deliveries.
